\n\u00bb<\/strong> \u00a0 Risk Management.
\n\u00bb<\/strong> \u00a0 Behaviour.<\/p>\n
It is not difficult to find a currency trading system that has an edge and it’s not difficult to manage risk, so why is it that not everyone can trade Forex and make money? Emotional discipline is the answer and the behavioural side of currency trading is the most challenging no question but if you can re-train your brain to think in probabilities and not certainties you can potentially profit handsomely.<\/p>\n
The trading edge you\u2019ll have using the system you trade with has a random probability of success. Meaning over a series of forex trades it will likely make money however picking the absolute winners is impossible. Finding an edge that has the probability of making money over a series of trades as I said is not difficult but you must understand that it’s a series of trades that matters and not just this trade right now. Think of it like flipping a coin. You and I know a coin is a 50\/50 bet, its heads or tails and the odds will never change. But flip a coin 10 times and you could have 7 heads and 3 tails or 6 tails and 4 heads leading someone to believe that maybe it’s not 50\/50. Flip it 100 times and you will very quickly see that over time it will always end up being 50\/50 as it cannot be anything else.<\/p>\n
So to re-train your brain as a currency trader you need to do the following<\/p>\n
\u00bb<\/strong> \u00a0 Pick your edge. Provided the system you have does have a small edge, your average win is larger than your average loss and you do actually take the trade when the edge appears for 20 trades the outcome will highly likely be that you make money.<\/p>\n The challenging part is re-training your brain to think in numbers over a period of time and not thinking in certainties on each forex trade you enter because your human instinct will want to see a winning trade every time. But does a Casino worry if it has a few losing hands? Of course not because over time if it keeps playing the edge which has a better than 50\/50 probability they will make money over time. They do not sweat or get emotional about one roll of the dice like many traders do with one trade. They think in probabilities and not certainties.<\/p>\n If you\u2019d like to learn more about how to re-train your brain as a forex trader and learn some trading edges that can be applied successfully in the market over time join me every Wednesday evening at 7pm AEST for a free currency coaching session. To log into the session simply click on the following link at 6.45pm AEST (Sydney time) to ensure you are safely logged into the web conference room.\u00a0 http:\/\/gomarkets.webinato.com\/room1<\/a><\/strong><\/span><\/p>\n Andrew Barnett is a\u00a0regular Sky News Money Channel Guest and one Australia\u2019s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar.<\/p>\n
\n\u00bb<\/strong> \u00a0 Apply your risk management to ensure you are not risking more than you are looking to make on each trade.
\n\u00bb<\/strong> \u00a0 Trade your edge over 20 trades and then judge the success.<\/p>\n\n\n
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\n ![\"Andrew](\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2016\/08\/AB-desk.bmp\" "\\"Andrew")
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\n Andrew Barnett\u00a0| \u00a0Director \/ Senior Currency Analyst<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n\n
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